Thanks to the Tooth Fairy, Santa and generous grandparents, many kids are bombarded with cash long before they understand how money works. In our family, we try to use these gifts as teachable moments on money management – along with spreading the joy of receiving gifts, of course.

For my kids, a small percentage right off the top goes to charity to help those less fortunate. Another portion goes into their savings accounts to help pay for big-ticket items they want.

The rest is theirs to spend as they please. We try to let our kids make financial decisions and mistakes on their own in a safe environment, before the stakes become too high.